Rubber prices at 8-year high; likely to increase
Alappuzha: Rubber prices are at eight-year high in India and trends suggest they will continue to go up.
On August 18, the price of RSS-4 variety of rubber was at Rs 178.50/kg. The price of rubber touched Rs 196 in July 2013 after which the prices started plummeting.
It is expected that prices will increase in the range of Rs 180 to Rs 185. Rainy season interrupts rubber tapping process and rubber sheets do not reach the markets resulting in high prices. Similarly, many cultivators are holding back the stock anticipating high prices. The base price of Rs 170 announced by the government have given high hopes to the farmers. They are optimistic that rates will be stable.
Meanwhile, the price of rubber latex is at a high at Rs 180/kg. People selling latex is also high now. Likewise, the exports hindered by various reasons have contributed to higher price.
In Bangkok, where international rates are determined, the price of RSS-3 variety of rubber (equivalent of RSS-4 in India) was Rs 143.74/kg on Wednesday. Though traders involved in export business depend on block rubber, they are supposed to pay freight charges and export duty. Due to shortage of containers, this process is also interrupted. As a result, they are also procuring rubber from the country in small quantities.